Canton Network targets European and Asian government bonds after US Treasuries
RWA Signal Insight
InfrastructureThe Canton Network, a blockchain infrastructure built by Digital Asset, is expanding its tokenization efforts beyond US Treasuries to include European and Asian government debt. Following the launch of tokenized US Treasuries for repo transactions in August 2026, the network is now targeting UK Gilts, EuroGovs, and Japanese Government Bonds (JGBs). To facilitate atomic settlement, the network is simultaneously developing bank deposit tokens, which allow the cash leg of a trade to occur on the same ledger as the bond. Major institutions including MUFG, Mizuho, Nomura, LSEG, and Euroclear have participated in various pilots and cross-border repo tests throughout 2026. The Depository Trust & Clearing Corporation (DTCC) is also slated to launch a tokenization service on Canton in the fourth quarter of 2026, initially covering 25 US Treasury securities. By enabling 24/7 on-chain repo, this infrastructure aims to solve collateral mobility issues that currently plague traditional markets restricted by business hours. The success of this expansion depends on the transition of these proofs of concept into live, scalable repo activity and the widespread adoption of deposit tokens by commercial banks.
Key points
- Canton Network is expanding tokenization to include UK Gilts, EuroGovs, and Japanese Government Bonds.
- DTCC plans to launch a tokenization service for 25 US Treasuries on Canton in Q4 2026.
- Japanese banking giants MUFG, Mizuho, and Nomura are conducting proofs of concept for JGBs.
- Canton-connected platforms have historically processed over 50% of global digital bond issuances.
Background
The Canton Network is an interoperable blockchain network designed specifically for institutional finance, allowing different financial systems to communicate and settle transactions atomically. It utilizes Digital Asset's Daml smart contract language to ensure that complex financial workflows, such as repo agreements, can be executed across multiple institutions while maintaining strict privacy and regulatory compliance.